Dunzo's final delivery: Reliance-backed delivery app shuts down after CEO Kabeer Biswas departs

Dunzo, the Reliance-backed hyperlocal delivery app, has gone offline following the exit of co-founder and CEO Kabeer Biswas, who moved on to join Flipkart.

Founded in July 2014 by Kabeer Biswas, Ankur Agarwal, Dalvir Suri, and Mukund Jha, Dunzo is an Indian company specializing in hyperlocal deliveries, offering groceries, pet supplies, food, medicines, and packages within major cities.

Over the past year, Dunzo has undergone significant internal changes, including the departure of co-founders Mukund Jha and Dalvir Suri.

Once a leader in India's fast-commerce market, the company has struggled over the past 12 to 18 months and has been losing ground rapidly.

Since Biswas's departure, both the website and app have completely shut down, leaving users with error messages.

Biswas has joined Minutes, the rapid commerce division of rival Flipkart.

Initially, Dunzo provided pick-and-drop services. After pivoting to fast commerce in 2021, it secured $240 million in funding from Reliance Retail in 2022.

However, it has faced ongoing financial difficulties and has scaled back operations significantly.

The company has also encountered legal challenges due to its financial troubles. In July, a group of creditors accused Dunzo of partially settling its debts and filed for insolvency.

One such creditor, Betterplace Safety Solutions, had previously filed an appeal with the National Company Law Tribunal (NCLT) in Bengaluru for unpaid debts totaling ₹4 crore.

Once employing around 3,000 people, Dunzo began layoffs in January 2023.

The latest round in August 2024 reduced the workforce to just 50 employees across the supply and marketplace verticals, following the dismissal of 150 staff members.

All employees have now left the company.

Some former employees filed a complaint against Biswas at the Indira Nagar Police Station in Bengaluru on Jan 9 regarding pending salaries.

The complaint alleges that Dunzo has failed to pay salaries to approximately 400 employees.

Google and Reliance Retail both own significant stakes in Dunzo, with Google holding 20% and Reliance Retail owning 26%.

The largest shareholder, Reliance Retail, recently wrote off its $200 million investment in the company.

Due to the company's liquidity issues and exit from rapid commerce over the past 24 months, Reliance is no longer in talks to invest in or acquire Dunzo in a distressed sale.

Meanwhile, Biswas is leading negotiations with family offices and wealthy individuals for an acquisition deal, valuing the startup at ₹300 crore.

In 2023, PhonePe reportedly offered Dunzo a substantial investment in its merchant network business, but the offer was rejected by Dunzo's investors, who were concerned about PhonePe's parent company, Walmart, and didn't want to relinquish the Dunzo brand name.

Though Dunzo was once a pioneer in India’s fast-commerce space, it failed to capitalize on its early-mover advantage and fell behind competitors like Zepto, Swiggy Instamart, and Blinkit (owned by Zomato).